Forex news for North American trading on August 7, 2020:
- Gold down $32 to $2031
- WTI crude down 43-cents to $42.52
- US 10-year yields up 2.8 bps to 0.564%
- S&P 500 up 2 points to 3351
- USD leads, NZD lags
The July non-farm payrolls report was better than expected, even with you adjusted for some seasonal quirks. The data led to a round of US dollar gains that largely held up into the close.
The gains didn’t come on the initial jobs headlines but later, in part because of stimulus headlines and risk aversion. At several points throughout the day it looked like risk trades could roll over but the dip buyers always arrived in equities.
In FX, it was a different story as AUD/USD finished the day near the lows and down 80 pips. That takes the pair away from the multi-month highs it hit earlier in the week. NZD/USD followed the same track in a fall to 0.66 after nearly hitting 0.67 on Thursday.
Cable fell as low as 1.3010 but bids at the figure held up and the pair finished at 1.3057.
The euro backed away from 1.2000 in a nearly 1 cent fall. An initial gain on the jobs report was quickly erased and the lows 1.1755 before a chop and 30 pips bounce late.
Have a great weekend.